What is an essential factor for determining a per se professional client status for large undertakings?

To determine a per se professional client status for large undertakings, it is essential that the entity satisfies at least two out of the specified criteria laid down by regulatory frameworks. This approach aligns with the intention to categorically identify entities that possess a sufficient level of experience, expertise, and resources to safeguard their own interests in financial transactions.

By requiring that at least two criteria be met, the regulatory framework ensures that the classification of professional clients is not solely reliant on a single measure, such as turnover or balance sheet figures. This multifaceted criterion enables a more comprehensive assessment of an entity's capabilities and understanding of complex financial products, thus facilitating a distinction between professional clients and retail clients.

Further emphasizing the importance of this classification is the fact that professional clients receive a different level of regulatory protection compared to retail clients. By recognizing that a combination of factors paints a clearer picture of an entity's competence and sophistication, the regulations can better allocate the appropriate level of investor protection and requirements based on an entity's true capacity in navigating financial markets.